State money and bank money: lifting the fog around QE
Steve Hanke calls on economists to pay more attention to the money supply
Ever since the Federal Reserve began to consider raising the federal funds rate, which eventually it did in December 2015, a cottage industry has grown around ‘taper talk’. Will the Fed raise rates or not? Each time a consensus congeals around the answer to that question, all the world's markets either soar or dive.
This obsession with taper talk – the interest rate story – is simple, but strange. Indeed, it is misguided – wrongheaded. So, why the obsession? It is, in part, the result of a
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